Seeking Pre-Approval Multiple Times

[Jason Bornstein]

My understanding is that during the loan approval process the underwriter will typically look at the previous two years of tax returns...  This past year I did well financially, but the year before that was not very good financially.  I anticipate this upcoming year (2020) to be a good income year.  Should I wait to go through my pre-approval until I have two good financial years in a row or should I just go through the process now because it can't hurt anything?  Is there a danger is getting stigmatized by the lender if they reference my previous approval requests when my financials weren't as good?

[Joseph Cacciapaglia]

There really isn't any downside to trying to get approved for a loan today. Any slight negative effect from the credit pull should be gone next year anyway. If you have a good loan officer, they should be able to look at your situation and give you a good idea where you stand before they even pull your credit. Your lender is one of the most important team members for your investing career. I would take the time to talk to several about your situation, as a way to interview them for the role.